An Overview of the Framework, System, and Process

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2. SM Use of the Georgia Oglethorpe Award Logo is restricted to current Key Investors, Award Recipients, and the office of Georgia Oglethorpe Award Process, Inc. People are encouraged to share the information which follows as an official Georgia Oglethorpe presentation. No one is permitted to use the Georgia Oglethorpe Award name for marketing purposes or the Georgia Oglethorpe Award logo, without written consent of the executive director, Georgia Oglethorpe Award Process, Inc.

3. Georgia Oglethorpe Award Process, Inc. An Overview of the Framework, System, and Process The Georgia Oglethorpe Criteria for Performance Excellence Fall/ Winter - 2006/ 2007

4. Note to Readers Georgia Oglethorpe exists to provide education, assessment, and recognition. It is not in the consulting business. Information provided here is intended to educate you and members of your organization about what basic considerations an organization must address to create and sustain high performance. The how is your choice.

5. Performance Excellence in Georgia and the U.S. Presented to: Those interested in improving their business results and outcomes. Presented by: Georgia Oglethorpe Award Process, Inc.

6. Outline of Slides • Introduction to Performance Excellence Awards • Overview of Georgia Oglethorpe Award Process, Inc. • Overview of National Baldrige Award • The Criteria for Performance Excellence: A Systems Perspective • Criteria System Framework • Organizational Profile • Criteria Categories and Items

7. Outline of Slides (continued…) • How the Criteria and Scoring are used to assess your organization • What steps are available for assessment • What it means to receive the Award • Where you might go from here (suggestions, not a prescription) • Other assessment options • How to contact the Georgia Oglethorpe Office

8. Introduction to Performance Excellence Awards

9. What is Georgia Oglethorpe Award Process, Inc.? • Public-private partnership • Mission – Leading Georgia’s Organizations to Improve Performance • Vision – Georgia Outperforming the World! • Modeled after the Malcolm Baldrige National Quality Award Criteria and Award Process

10. What is Georgia Oglethorpe Award Process, Inc.? (continued…) • Recognizes organizational performance achievements • Raises awareness of systems thinking (everything is an interdependent part of a bigger picture) • Promotes information sharing • Promotes strategic and tactical approaches to organizational performance • Provides education, assessment and recognition to all types and sizes of organizations • Provides a three-step approach for your “never ending” performance excellence journey

11. Georgia Oglethorpe Leading Georgia’s Organizations to Improve Performance Annual Conference & Awards Banquet Georgia Focus Recognition Self-Assessment Tool (Step 1) Workshops and Seminars for Potential Applicants and Users of the Criteria Georgia Progress Award (Step 2) Georgia Oglethorpe Award Assessment, Feedback & Recognition Process based on the Malcolm Baldrige National Quality Award Model (Step 3) Performance Excellence Showcase to Enable Learning from Award Winners Annual Board of Examiners Training to Educate Examiners, Team Leads and Judges User Network Serious Wannabe Applicants and Users of the Criteria for Performance Excellence

12. Historical Perspective • Baldrige established in 1987 to recognize U.S. organizations for quality and performance achievements • Established as a diagnostic tool for self- and third-party assessments • 70+ nations have Baldrige-based award processes • 40 states have Baldrige-based award processes • Initial focus was on the manufacturing industry • Current focus is on all sector organizations (business, industry, government, education, healthcare, and nonprofits)

13. Characteristics of High Performing Organizations • Focus on customers and key stakeholders • Are proactive with little need to be reactive • Desire to improve and keep pace with changing organizational needs • Align strategies, goals, objectives, processes, and actions with vision and mission • Manage by fact • Rank among the leaders in their industry/ sector • Commit to life-long learning and improvement

14. Why Georgia Uses a Common Criteria for All Sector Organizations • Increases the ability to communicate and share model practices between different types of organizations • Enhances learning both within and between the sectors • Encourages an inclusive process for sharing – vs. an exclusive one

15. The Criteria for Performance Excellence: A Systems Perspective

16. What the Criteria are Not! • Six Sigma • Lean Manufacturing • ISO 9000 • Re-engineering • Balanced Score Card • Kaizen Teams • Hoshin Planning

17. What the Criteria Are! An interdependent set of Criteria which include all the basic considerations an organization must address to create and sustain high performance.

18. Criteria Enable You to Achieve a Mature Business System …You run it. It does not run you! 20 / 80

19. Criteria Framework: A Systems Perspective

20. Criteria Structure • Seven Categories • Nineteen Items (basic requirements) • Multiple Areas to Address (multiple requirements) • Non-prescriptive (ask “what”) • Process Categories ask for “how” • Results Category asks for “results”data and information”

21. Criteria Structure continued… • Process Categories expect: • Approach • Deployment • Learning • Integration

22. Criteria Structure continued… • Results Category expects: • Performance levels • Trends • Comparisons • Linkages • Results Category identifies: • Gaps

23. Organizational Profile: Environment, Relationships, & Challenges Critically Important because it: • Serves as the most important starting point for understanding your organization • Enables you to ensure the processes you use to run your organization and what you measure is linked and aligned with what is important to you

24. Organizational Profile: Environment, Relationships, & Challenges continued… • Top leaders and managers must clearly define the organization and what is important – so others can understand their priorities Enables you to work on your business, not in your business.

25. Organizational Profile Is a snapshot of your organization, the key influences on how your operate, and the key challenges you face.

26. Organizational Profile P2 Key Organizational Challenges P1 Organizational Description • What are: • Your key organizational • characteristics? • - Organizational environment • - Organizational relationships • Describe your: • Competitive environment • Key strategic challenges • System for performance • improvement

27. Leadership The Leadership Category examines how your organization’s senior leaders guide and sustain your organization. Also examined are your organization’s governance and how your organization addresses ethical, legal, and community responsibilities.

28. Leadership 1.1 Senior Leadership: How you as senior leaders lead? 1.2 Governance and Social Responsibilities:How you govern and address social responsibilities? • Describe how: • Guide and sustain • Communicate with employees • Encourage high performance • Describe : • Your governance system • Describe how: • Address public responsibilities • Ensure ethical behavior • Practice good citizenship

29. Strategic Planning The Strategic Planning Category examines how your organization develops strategic objectives and action plans. Also examined are howyour chosen strategic objectives and action plans are deployed and changed if circumstances require, and how progress is measured.

30. Strategic Planning 2.1 Strategy Development: How you develop strategy? 2.2 Strategy Deployment: How you deploy strategy? • Describe how: • Establish strategy and strategic • objectives • Address strategic challenges • Describe how: • Convert strategic objectives into • action plans

31. Customer and Market Focus The Customer and Market Focus Category examines how your organization determines the requirements, needs, expectations, and preferences of customers and markets. Also examined is howyour organization builds relationships with customers and determines the key factors that lead to customer acquisition, satisfaction, loyalty, and retention and to business expansion and sustainability.

32. Customer and Market Focus • Describe how: • Determine customers’ requirements, • needs, expectations and preferences • Market to ensure continuing relevance • of products and services and to • develop new business opportunities 3.1 Customer and Market Knowledge: How you use this? 3.2 Customer Relationships and Satisfaction: How you build relationships? How you grow satisfaction and loyalty? • Describe how: • Build relationships to acquire, • satisfy, and retain customers • Increase customer loyalty • Determine customer satisfaction

33. Measurement, Analysis, and Knowledge Management The Measurement, Analysis, and Knowledge Management Category examines how your organization selects, gathers, analyzes, manages, and improves it data, information, and knowledge assets. Also examined is howyour organization reviews its performance

34. Measurement, Analysis, & Knowledge Management 4.1 Measurement, Analysis, and Review of Organizational Performance: How you do this? • Describe how: • Measure, analyze, align, review, and • improve performance data and • information at all levels and in all parts • of organization • Describe how: • Ensure quality and availability of • needed data and information for • employees, suppliers, partners, • collaborators, and customers • Build and manage knowledge assets 4.2 Information and Knowledge Management: How you manage these?

35. Human Resource Focus The Human Resource Focus Category examines how your Organization’s work systems and your employee learning and motivation enable all employees to develop and utilize their full potential in alignment with your organization’s overall objectives, strategy, and action plans. Also examined are your organization’s efforts to build and maintain a work environment and employee support climate conducive to performance excellence and to personal and organizational growth.

36. Human Resource Focus 5.1 Work Systems: How you enable employees to accomplish work? • Describe how: • Work and jobs enable • employees and the organization to • achieve high performance • Compensation, career progression, • and related workforce practices enable • achievement of high performance 5.2 Employee Learning and Motivation: How you contribute to employee learning and motivate employees? 5.3 Employee Well-Being and Satisfaction: How you contribute to well-being and grow satisfaction? See next page… See next page…

37. Human Resource Focus (continued…) 5.2 Employee Learning and Motivation: How you contribute to employee learning and motivate employees? 5.3 Employee Well-Being and Satisfaction: How you contribute to well-being and grow satisfaction? • Describe how: • Your employee education, training, • and career development support • achievement of objectives and • contribute to high performance • Your education, training, and career • development build employee knowledge, • skills, and capabilities • Describe how: • You maintain a work environment • and an employee support climate • that contribute to well-being, • satisfaction, and motivation of all • employees

38. Process Management The Process Management Category examines the key aspects of your organization’s process management, including key product, service, and organizational processes for creating customer and organizational value and key support processes. This Category encompasses all key processes and all work units.

39. Process Management 6.1 Value Creation Processes: How you identify and manage key processes? • Describe how: • Identify and manage key value • creation processes for delivering • customer value and achieving • organizational success and growth 6.2 Support Processes and Operational Planning: How you Identify and manage support processes and accomplish operational planning? • Describe how: • Manage key processes that support • value creation processes • Describe: • Processes for financial management • and continuity of operations in an • emergency

40. Results The Results Category examines your organization’s performance and improvement in all key areas – product and service outcomes, customer satisfaction, financial and marketplace performance, human resource outcomes, operational performance and leadership and social responsibility. Performance levels are examined relative to those of competitors and other organizations providing similar products and services.

41. Results 7.1 Product and Service Outcomes: What are your product and service performance results? Summarize key product and service performance results. Segment results by product and service types and groups, customer groups, and market segments, as appropriate. Include appropriate comparative data. 7.2 Customer-Focused Outcomes: What are your customer-focused performance results? • Summarize key customer-focused results, including customer satisfaction and customer-perceived value. • Segment results by product and service types or groups, customer groups, and market segments, as appropriate. • Include appropriate comparative data.

42. Results (continued…) 7.3 Financial and Market Outcomes: What are your financial and market results? Summarize key financial and marketplace performance results by customer or market segments, as appropriate. Include appropriate comparative data. Summarize key human resource results, including work system performance and employee learning, development, well-being, and satisfaction. Segment results to address the diversity of your workforce and the different types and categories of employees, as appropriate. Include appropriate comparative data. 7.4 Human Resource Outcomes: What are your human resource results?

43. Results (continued…) Summarize key operational results that contribute to the improvement of organizational effectiveness. Segment results by product and service types and groups, and by market segments, as appropriate. Include appropriate comparative data. 7.5 Organizational Effectiveness Outcomes: What are your organizational effectiveness results? 7.6 Leadership and Social Responsibility Outcomes: What are your leadership and social responsibility results? Summarize key governance, senior leadership, and social responsibility results, including evidence of ethical behavior, fiscal accountability, legal compliance, and organizational citizenship. Segment results by organizational units, as appropriate. Include appropriate comparative data.

44. How the Criteria and Scoring are Used to Assess Your Leadership and Management System

45. { APPROPRIATE SYSTEMATIC ALIGNED { CURRENT PERFORMANCE PERFORMANCE RELATIVE TO COMPARISONS PERFORMANCE TRENDS AND BREADTH CRITERIA RATING SYSTEM • PROCESSES – Categories 1 - 6 • APPROACH (METHODS) • DEPLOYMENT (EXTENT & BREADTH APPLIED) • RESULTS – Category 7 • RESULTS

46. What Steps are Available for Learning and Using the Criteria ?

47. Three Step Process Baldrige Award (For those eligible.) Maturity and Recognition Options Georgia Oglethorpe Award Step 3 Georgia Progress Award Step 2 Georgia Focus Recognition Step 1

48. Strategy Strategy 1. Reacting to Problems 2. Early Systematic Approach Strategy Strategy 3. Aligned Approach 4. Integrated Approach Steps Toward A Mature SystemStrategic AND Operational Goals

49. What it Means to Receive the Award... • Results - have improving trends and comparative data with good to very good performance levels • Results address your customers, governance and ethics, operations, employees, owners, suppliers, and other key stakeholders

50. What it Means to Receive the Award... • Results are not accidental • Results are attributed to sound, systematic processes • Evaluation and improvement are embedded in your business You run your business. It does not run you!